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Section 6050W of the Internal Revenue Code

  • The Housing Assistance Tax Act of 2008 included the enactment of Section 6050W of the Internal Revenue Code, an important new measure that requires companies like First Data to report the gross amounts of their merchant customers’ payment card transactions to the Internal Revenue Service (IRS).

    As a result of these new requirements, merchants must provide their valid tax identification number (TIN) and tax filing name. If a merchant fails to provide its TIN or if the IRS provides notification that there is a discrepancy between the information provided by the merchant and the IRS records, the reporting entity will be required to withhold tax on the merchant’s future funding amounts, starting in January 2012.

  • Related Links

  • Summary: Section 6050W of the Internal Revenue Code

    Section6050W-255-001_Irs_MerchantUW11.18.10FFF – 673 KB
  • Who reports under Section 6050W?

    Section6050W Decision Tree – 53 KB
    • These materials pertain to the new information reporting rules under Internal Revenue Code section 6050W. The materials were prepared based upon the specific facts and circumstances for First Data Corporation and its affiliates. Generic, hypothetical, facts and circumstances also have been used. We do not make any warranty or representation as to the completeness or accuracy of this information, nor assume any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as legal or tax advice and readers are encouraged to seek the advice of a competent tax professional where such advice is required. We recommend that you consult with your own legal and tax advisors when evaluating how the subject matter of these materials might affect you.